2) Unpaid Interest is Not Added to the PrincipalĪ simple interest loan is an amortized loan, meaning that you make periodic payments and unpaid interest is paid before your payment is applied to the principal. See the simple interest article and calculator to learn more about the simple interest formula. Assuming that the prior unpaid interest balance was zero, that means that $15 of the $100 payment would be interest and $85 would be principal, making the new principal balance $9915 as of. Let's say the borrower paid $100 on (15 days later). If the annual rate was 3.65%, then the daily rate would be 3.65%/365 = 0.01%. The interest due is calculated as rate* days* principal, where rate is the daily rate, days is the number of days since the last payment, and principal is the amount owed.Įxample: Let's say the last payment was made on and after applying the payment, the principal balance is $10,000.

How do you calculate the interest for a Simple Interest Loan? First, the annual rate is converted to a daily rate by dividing the annual rate by 365 (or 360 in some day count conventions). By using the Legal Information, you release Vertex42 from all claims, losses or damages arising out of such use, and you agree that Vertex42's liability, if any, shall be limited as set forth in the Terms of Use. Vertex42 makes no representation or warranty whatsoever (including any warranty of merchantability or fitness for a particular purpose) regarding the Legal Information, and your use of the Legal Information is solely at your own risk. The simple interest loan agreement template, instructions and related information ('Legal Information') provided herein may not be appropriate for your specific situation, may not be suitable for use in some jurisdictions, and should be reviewed, and modified if necessary, by a licensed attorney prior to being used as a legal contract. IMPORTANT DISCLAIMER: is not a law firm and does not provide legal advice or legal representation. The template does not include provisions for describing collateral, so this agreement would mainly be used for personal unsecured loans. It includes provisions for describing frequency of payments, how interest is accrued, and how fees are charged. This information appears on the upper part of the spreadsheet so that all the important information you need is available at a glance.I worked with a real estate attorney to create a loan agreement template in Word specifically for this Simple Interest Loan calculator. This Biweekly Mortgage Payment Amortization Template for Excel also displays your Annual Loan Payments, Biweekly Payments, Interest Over Term of Loan and Sum of all Payments. It includes Loan Principal Amount, Annual Interest Rate, Loan Period in Years, Base Year, Loan Start Date, and Date of First Payment. All you have to do is input all the information needed. What is also great about this Biweekly Mortgage Payment Amortization is that you don’t have to resort to Mortgage Amortization Calculators because all the computations already come with the Excel template. This information is important so you can easily analyze your payments and plan your financial situation against your scheduled mortgage payments. It also shows the Beginning Balance of your Mortgage, as well as the Cumulative Principal, Cumulative Interest, and Ending Balance. Through the Biweekly Mortgage Payment Amortization Template for Excel, you can know how much of your biweekly payments go to the principal and how much goes to the interest. It is professionally designed to show you your mortgage payment amortization schedule and how your payments affect your principal and interest. This is available for Excel 2003 or later versions.

This Mortgage Payment Amortization Template is a template designed by Microsoft partner TemplateZone by KMT Software. The Biweekly Mortgage Payment Amortization Template for Excel is a wonderful tool for keeping track of your payments and to also see how long it will take you to pay off your loan, as well as the interest you need to pay.

Amortization schedule spreadsheet